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REITs investment & personal finance


Tuesday, August 02, 2022

Mapletree Industrial Trust Review @ 2 August 2022

Basic Profile & Key Statistics
  • Main Sector(s): Industrial & Office
  • Country(s) with Assets: Singapore, United States & Canada
  • No. of Properties (exclude development/associate/fund): 141

Key Indicators



Performance Highlight

Gross revenue, NPI, distributable income and DPU increased yoy mainly due to the contribution from 29 data centres in the U.S. that were acquired in July 2021.

Rental Reversion
Besides business park buildings with more than a 5% increase in the rental rate, the renewal rental rates are similar to before renewal for all types of buildings. Whereas for new leases, the rental rate is slightly lower than passing rent for hi-tech buildings and flatted factories but higher for business park buildings.    

Development

The redevelopment of Kolam Ayer 2 is expected to be completed in phases where 163 & 165 Kallang Way in 2H2022 and 161 Kallang Way in 1H2023.

Divestment

MIT completed the divestment of 19 Changi South Street 1 on 21 April and 19675 West Ten Mile Road on 9 Jun at the above valuation.


Related Parties Shareholding

  • REIT sponsor's shareholding: ± 10% from median
  • REIT manager's shareholding: ± 10% from median
  • Directors of REIT manager's shareholding: Above median for more than 20%

Lease Profile

  • Occupancy: ± 5% from median
  • WALE:  ± 10% from median
  • Highest lease expiry within 5 years: Below median for more than 20%. Falls in FY23/24
  • Weighted average land lease expiry: Below median for more than 20%

Debt Profile

  • Gearing ratio: ± 10% from median
  • Gearing ratio including perps: ± 10% from median
  • Cost of debt: ± 10% from median
  • Fixed rate debt %: ± 10% from median
  • Unsecured debt %: 100%
  • WADM: Above median for more than 20%
  • Highest debt maturity within 5 years: ± 10% from median; Falls in FY26/27
  • Interest coverage ratio: Above median for more than 20%

Diversification Profile

  • Top geographical contribution: Above median for more than 10%
  • Top property contribution: Below median for more than 20%
  • Top 5 properties' contribution: Below median for more than 20%
  • Top tenant contribution: Below median for more than 20%
  • Top 10 tenants' contribution: Below median for more than 20%

Key Financial Metrics

  • Property yield: Above median for more than 20%
  • Management fees over distribution: ± 10% from median; $6.37 distribution for every dollar paid 
  • Distribution on capital: Above median for more than 20%
  • Distribution margin: Above median for more than 10%

Trends


  • Uptrend: DPU, NAV per Unit
  • Slight Uptrend: Occupancy
  • Downtrend: Interest Coverage Ratio, Property Yield, Distribution on Capital, Distribution Margin

Relative Valuation

  • P/NAV: Average for 1y & 5y; Below average for 3y
  • Dividend Yield: Average for 1y & 5y; Above average for 3y

Author's Opinion

 Favorable Less Favorable
Diversified SectorHigh Directors of REIT Manager's Shareholding
Well Spread Lease ExpiryShort Weighted Average Land Lease Expiry
100% Unsecured DebtHigh Top Geographical Contribution
Long WADMInterest Coverage Ratio Downtrend
High Interest Coverage RatioProperty Yield Downtrend
Low Top Property & Top 5 Properties ContributionsDistribution on Capital Downtrend
Low Top Tenant & Top 10 Tenants ContributionsDistribution Margin Downtrend
High Property Yield 
High Distribution on Capital 
High Distribution Margin 
DPU Uptrend 
NAV per Unit Uptrend

MIT has delivered another good result and performance has improved as compared to the previous quarter. The occupancy rate has also improved to 95.3% from 93.6% as of 4Q 2021. 


You could also refer below for more information:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and Detail of Singapore REIT

REIT Analysis - List of previous REIT analysis posts


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*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.

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